When a lessor receives cash on a sales-type lease, which of the following accounts is decreased?

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When a lessor receives cash on a sales-type lease, the Lease Receivable account is decreased as the lease payments are being received and applied towards the outstanding lease balance. Option A, Interest Revenue: Leases, would only be decreased if the lease payments were being made towards the interest portion of the lease. Option B, Lease Rental Revenue, would not be decreased as this account represents the total income earned from the lease and is not affected by cash received. Option D, Unearned Interest: Leases, would only be decreased if the lease contained an interest component that was paid in advance by the lessee.

When a Lessor Receives Cash on a Sales-Type Lease, Which